Small business loans are seeing a bump in activity, as industry data shows lenders of all types are making more money available to small business owners.

This could help explain why small business optimism is on the rise.

“August’s Optimism Index rose 0.4 points to 96.1 making it the second highest reading since October 2007,” stated the latest National Federation of Independent Business (NFIB) Small Business Economic Trends report.

The report went on to state that capital spending saw increased activity, as did job openings.

“Spending and hiring seem to be driven mostly by population growth and the need to replace depreciated assets,” the report continued.

Any small business that counts itself among the ranks of those seeking working capital would be wise to explore all its options before making a decision. After all, there are many factors small business owners must account for.

Collateral risk

One aspect small business owners should keep in mind is whether or not they are required to pledge personal assets in order to obtain working capital loan. Finding a lender who will make money available without this requirement is obviously preferable to keep personal finances safe and separate.

Straightforward application

Running a small business is a time-consuming job. While it can certainly be both fulfilling and lucrative, it doesn’t leave many spare moments to go over long, complicated loan paperwork. That’s why business owners will want to seek out lenders who make simple, straightforward paperwork a part of the equation.

No obligation

Exploring your loan options shouldn’t have to mean being forced to follow through. Whenever you’re researching working capital alternatives, ensure it features a no-obligation application process. After all, the ultimate decision should come down to you and your needs, no those of your lender.

Flexibility

How you receive your money, and more importantly, how you have to pay it back, may be the most important factor when it comes to taking out a small business loan. No two businesses are the same, so a one-size-fits-all approach to repayment won’t work. This is why it’s vital to make sure variable payback terms are part of any working capital loan you borrow.

Speed

Finally, no matter what you plan on using your funds for, chances are you need them quickly. Waiting too long for much-needed working capital can be a big problem for businesses in need, so work with a lender who can get you what you need when you need it. Funding within 24 hours is much more effective than weeks of waiting, after all.